Annaly offers to buy CreXus for about $839 million
NEW YORK (AP) — Real estate investment trust Annaly Capital Management Inc. is offering to buy the rest of specialty finance company CreXus Investment Corp. for about $839 million.
Annaly said that it will pay $12.50 per share for the stock it doesn't already own.
Annaly already holds a 12.4 percent stake in CreXus, or approximately 9.5 million shares. CreXus has about 76.6 million outstanding shares.
The offer price is an almost 13 percent premium to CreXus' Friday closing price of $11.10. CreXus shares climbed $1.40, or 12.6 percent, to $12.50 in premarket trading.
Annaly Chairman and CEO Wellington Denahan said in a statement that the buyout proposal would provide an opportunity to diversify part of its investment portfolio.
Denahan said that Annaly may choose to allocate up to 25 percent of its shareholders' equity for real-estate assets other than agency mortgage-backed securities.
An Annaly subsidiary, Fixed Income Discount Advisory Co., manages Crexus and two FIDAC employees are on CreXus' board.
Annaly said that it anticipates CreXus will create a special committee to assess its offer that will be made up of directors that are independent of its company.